CONFERENCE COMMITTEE REP. NO.174
Honolulu, Hawaii
, 2005
RE: H.B. No. 1548
H.D. 1
S.D. 1
C.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1548, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this bill is to amend the composition, selection, and term of the Board of Trustees of the Employer-Union Health Benefits Trust Fund (Board), as well as the quorum and voting requirements of the Board.
Among other things, this bill:
(1) Increases the number of trustees from 10 to 14, with seven trustees each representing public employers and employee-beneficiaries, respectively;
(2) Changes the entity appointing the employee-beneficiary trustees from the Governor to the six exclusive bargaining unit representatives, each of whom will select one trustee, and all of whom will select the retiree employee-beneficiary trustee by two-thirds majority vote;
(3) Changes the trustee term from four years to serving at the pleasure of the appointing entity; and
(4) Changes the quorum, vote, and dispute resolution requirements of the Board to account for the increase in the number of trustees.
After careful consideration, your Committee on Conference has amended this bill by:
(1) Reducing the number of trustees from 14 to ten, with five trustees each representing public employee-beneficiaries and employers, respectively;
(2) Reinstating the Governor's appointment authority for members of the Board;
(3) Changing the appointment process by creating a selection procedure for Board members as follows:
(A) Each of the three exclusive employee representative organizations with the largest number of employee-beneficiaries shall be entitled to submit a list of two nominees, from which the Governor shall appoint a trustee
(B) The remaining exclusive employee representative organizations shall be entitled to submit a mutually agreed-upon list of two nominees, from which one trustee shall be appointed; and
(C) A trustee representing retirees shall be appointed from a list of two nominees submitted by mutual agreement of all of the eligible exclusive representatives;
(4) Inserting a provision to address the issue of the ability for employee-representative organizations to establish voluntary employees' beneficiary association and the impact this may have on Board membership by prohibiting an exclusive employee representative organization from submitting nominees to be appointed to or from being represented on the Board;
(5) Creating a method for replacing employee-beneficiary representatives and retiree representatives on the Board;
(6) Eliminating the provisions changing the trustee term from four years to serving at the pleasure of the appointing entity;
(7) Deleting language changing the quorum, vote, and dispute resolution requirements of the Board to account for the increase in the number of trustees; and
(8) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1548, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1548, H.D. 1, S.D. 1, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE SENATE |
ON THE PART OF THE HOUSE |
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____________________________ BRIAN KANNO, Chair |
____________________________ KIRK CALDWELL, Co-Chair |
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____________________________ BRIAN T. TANIGUCHI, Co-Chair |
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____________________________ BOB NAKASONE, Co-Chair |